Latest news with #MylesO'Grady
Irish Independent
7 days ago
- Business
- Irish Independent
ECB set to cuts rates this week as inflation cools faster than expected
The ECB is widely expected to cut rates on Thursday at a scheduled meeting of its governing board. A rate cut of a quarter of one percent would bring the rate for the ECB's main refinancing operation – a reference for Irish tracker mortgages – to 2.15pc, a level last reached in late 2022. Traders are currently placing a 96pc chance on cut on Thursday, which will be the eighth cut since last June to the bank rate, currently at 2.25pc. Consumer prices rose 1.9pc in the year to the end of May, slowing from an inflation rate of 2.2pc in April. Excluding volatile items like food and energy inflation moderated to 2.3pc, while pressures in the closely watched services sector cooled markedly. It's the first time in eight months and only the second since mid-2021 that headline inflation hasn't exceeded the target. Inflation had spiked to 10.6pc in October 2022. Due to the uncertainty over how the global trade situation will evolve, the ECB will provide scenarios alongside its quarterly projections on Thursday. In March, it saw inflation slowing to 1.9pc in 2026 and 2pc and 2027, from 2.3pc this year. The strengthening of the euro, as the dollar has fallen, combined with softer energy costs have helped ease prices more quickly than many had expected. On Tuesday Bank of Ireland said it is cutting interest rate paid to savers on 12 and 18-month term deposits by 0.25pc from Thursday, June 5th. Customers who are in the process of opening new 12- or 18-month fixed-term deposit accounts can still avail of the current rates if they open their account by the close of business on 4 June, the bank said. It will take the interest earned for locking into the bank's Advantage 12 Month Fixed Term account to 1.74pc. The interest earned for locking into the Advantage 18 Month Fixed Term account will fall to 3.36pc (an annualised rate of 2.24pc). Bank of Ireland said the rate reduction will not affect its other savings accounts, including SuperSaver, the bank's most popular choice for new regular savings, which continues to offer a 3pc AER (Annual Equivalent Rate) for 12 months. Savers who are already locked into fixed-term deposit account will continue to earn interest at their original rate until the end of their term. The move comes ahead of an expected European Central Bank rate cut in Thursday, which will be the eight in succession. The ECB has lowered interest rates by a cumulative 1.75 percentage points in a year in a bid to calm inflation. In the same period Bank of Ireland, headed by CEO Myles O'Grady, has reduced its 12 and 18-month term deposit rates by a total of 0.75pc including the latest cuts.
Irish Independent
03-06-2025
- Business
- Irish Independent
Bank of Ireland to reduce savings rates on some accounts
Customers who are in the process of opening new 12- or 18-month fixed-term deposit accounts can still avail of the current rates if they open their account by the close of business on 4 June, the bank said. It will take the interest earned for locking into the bank's Advantage 12 Month Fixed Term account to 1.74pc. The interest earned for locking into the Advantage 18 Month Fixed Term account will fall to 3.36pc (an annualised rate of 2.24pc). Bank of Ireland said the rate reduction will not affect its other savings accounts, including SuperSaver, the bank's most popular choice for new regular savings, which continues to offer a 3pc AER (Annual Equivalent Rate) for 12 months. Savers who are already locked into fixed-term deposit account will continue to earn interest at their original rate until the end of their term. The move comes ahead of an expected European Central Bank rate cut in Thursday, which will be the eight in succession. The ECB has lowered interest rates by a cumulative 1.75 percentage points in just under two years in a bid to calm inflation. In the same period Bank of Ireland, headed by CEO Myles O'Grady, has reduced its 12 and 18-month term deposit rates by a total of 0.75pc including the latest cuts.
Irish Examiner
22-05-2025
- Business
- Irish Examiner
Bank of Ireland raises construction funding target to 30,000 homes
Bank of Irelandhas raised its target for funding of home construction from 24,000 houses to 30,000 across Ireland, it announced on Thursday. Last year Bank of Ireland funded the construction of 21,000 homes, and this year the bank was already supporting construction of 3,000 more, on 220 sites in 22 counties. Bank of Ireland said it is also convening a group of housing market stakeholders – drawn from homebuilders, equity investors, representative bodies, and professional services – to consider ways in which the private sector can further increase housing supply responsibly. 'Housing development is a pressing economic and social issue for Ireland, but outputs remain materially behind annual demand. This raises the prospect of significant consequences for individuals and families, as well as for Ireland's economic progress and social cohesion," said chief executive Myles O'Grady. Bank of Ireland last year increased funding available for new housing by 40% to €2.5bn, including €1bn for social and affordable projects. Recent projects funded include the Hallmark Development in Mallow; Rose Hill in Kerry Pike, a Torca Homes development in Clommel; a 531-apartment development by Dwyer Nolan in Ballyfermot; the Castlethorn 'Luttrellstown Gate' project in Dublin 15 and the GEM Construction projects at The Willows in Dunshaughlin Co Meath, and at Churchfields in Mulhuddart, Co Dublin.
Business Post
02-05-2025
- Business
- Business Post
Bank of Ireland cuts Irish GDP growth forecast to 3.5%
Economy Bank of Ireland cuts Irish GDP growth forecast to 3.5% Bank of Ireland has revised down its forecasts for Irish GDP growth in the wake of US tariffs Alice O'Leary 13:55 Bank of Ireland, led by chief executive Myles O'Grady, revised down its forecast for employment growth to a 1.8 per cent expansion in 2025. Picture: Naoise Culhane Bank of Ireland has downgraded its projections for Irish GDP growth, citing escalating trade tensions and the impact of newly imposed US tariffs as key ...
Irish Examiner
02-05-2025
- Business
- Irish Examiner
Bank of Ireland welcomes 'strong' performance as income rises by 8%
Bank of Ireland saw its income rise by 8% in the first three months of this year, with volume growth offsetting continued reductions in European Central Bank (ECB) interest rates. In a trading update published on Friday, the bank said net lending remained stable at €82.4bn, with a "strong" group performance in line with expectations. Reiterating its full-year guidance, Bank of Ireland posted annualised growth of 2% in its core portfolios and welcomed a "continued strong performance" in its mortgage business. The lender's mortgage market share of new lending was 37% in the first three months of this year, down from 40% at the end of 2024. The group's net interest income, the difference between the rate at which Bank of Ireland borrows and the rate it charges on loans, fell by 8% compared to the same period last year, primarily reflecting the European Central Bank's consecutive rate reductions which partially offset volume growth in both deposits and core loan portfolios. The bank said its operating expenses have progressed in line with expectations and were 3% higher in the first three months of 2025 compared to the same period last year. 'We had a very good start to the year, with performance and profitability in line with our expectations," said Bank of Ireland chief executive Myles O'Grady. "Positive domestic economic conditions supported robust customer activity, with the core loan book growing in the quarter, notably our Irish mortgage book by 3.5% annualised." Mr O'Grady added that the group had updated its Irish economic forecasts against a backdrop of global trade negotiations and potential impacts, with GDP and employment growth of 3.5% and 1.8% respectively for 2025. "Combined with the execution of the Group's strategy, this supports a positive outlook while remaining vigilant to potential risks associated with trade dislocation," the CEO continued. Bank of Ireland's pre-tax profit rose 92% to €1.9bn at the end of 2024, helped by a high interest rate environment and low competition in the Irish banking market. Looking forward, Bank of Ireland is expecting a full-year net interest income of more than €3.25bn, based on the Group's rate outlook, which anticipates an average 2025 ECB deposit rate of 2.18%, revised down from an initial estimate of 2.25%.
